BAA to Campaign for the Sustainable Growth of Heathrow

BAA has joined Future Heathrow, the campaign for the sustainable growth
of HeathrowAirport, saying that the expansion of the airport is vital
to UKcompetitiveness.

The move is a sign that BAA is increasingly confident that the further
growth of the airport is possible within environmental limits on noise,
air quality and surface access set out by the Government in its 2003
Air Transport White Paper.

Tony Douglas, Chief Executive Officer of BAA Heathrow says:

"The Government will launch a consultation on the future of
HeathrowAirportlater this year and BAA will be campaigning for
permission to grow."

"Heathrow is at the heart of the UKeconomy and one of our country's
most important assets. It supports thousands of jobs, provides the
vital links between the UKand the global economy, and is an absolutely
essential factor in convincing companies to locate in Britain. But
today Heathrow is full, operating at 99% of its current runway
capacity, and vulnerable to foreign competition."

"We do not underestimate the impact that Heathrow's expansion would
have on some local communities, but the decline of the UK's only hub
airport would also have real and lasting effects.

"We are increasingly confident that the further growth of Heathrow is
possible within the environmental limits set out by the Government -
that means no more noise than in 2002, air quality pollution safely
within EU limits, and public transport improvements to help manage
congestion."

Future Heathrow is a coalition of airlines, trades unions, business
groups, aircraft manufacturers and other organisations that support the
sustainable growth of HeathrowAirport.

Lord Clive Soley, Campaign Director of Future Heathrow says:

"I am delighted that BAA has joined Future Heathrow. It is a sign of
the growing realisation that Heathrow cannot stand still. If the
airport does not meet the evolving needs of business, then business
will simply move elsewhere, with other European airports eager to
provide the routes that Heathrow cannot."

BAA has been working with the Government, Civil Aviation Authority, and
National Air Traffic Services to consider how environmental conditions
on noise, air quality and surface access could be met in such a way as
to allow the growth of the airport. The work that is being undertaken
is known as the Project for the Sustainable Development of Heathrow and
fulfils the Government's commitment in paragraph 11.63 of the Air
Transport White Paper to:

"institute immediately with the airport operator and relevant bodies
and agencies a programme of action to consider how these conditions can
be met in such a way as to make the most of Heathrow's two existing
runways and to enable the addition of a third runway".

The results of the environmental assessment will be subject to full
public consultation later this year.

Heathrow's growth would only go ahead within strict environmental
limits. That means no more noise than in 2002, all air quality
pollution safely within EU limits, and public transport improvements to
help manage congestion.

Heathrow is vital to UKcompetitiveness. Heathrow provides the vital
arteries linking the UKto the global economy. Heathrow is the UK's
only hub airport. Around 85% of the UK's long-haul flights depart from
Heathrow. It operates the UK's only direct air links to emerging world
cities such as Shanghai, Beijing, Mumbai, and Sao Paulo. More than
half of all the UK's air freight passes through Heathrow

Heathrow supports thousands of jobs. Heathrow employs 70,000 people
and supports over 100,000 further jobs right across the UK. It is the
biggest single-site employer in the UK. In some local boroughs as many
as one in every ten people in employment work at Heathrow

Heathrow is an essential factor in attracting business to the
region.90% of businesses in Londonor the counties surrounding Heathrow
rate the airport as either vital' or very important' to their
business (OEF, 2006). More than half of major European companies
report that international transport links are absolutely essential' in
deciding where to locate their business (European Cities Monitor, 2005)

Heathrow is vulnerable to foreign competition. Heathrow has two
runways operating at 98.5% of their permitted capacity. Frankfurthas
three runways, Paris Charles De Gaulle has four, Amsterdam Schipol has
five, and all operate at less than 75% of their capacity. The number
of destinations served by Heathrow has fallen from 227 in 1990 to 180
today. Frankfurt, Parisand Amsterdamhave all increased their
destinations and can offer new slots to emerging economies.

Aviation is addressing its climate change impacts. BAA has put itself
at the forefront of lobbying for aviation to be included within the EU
Emissions Trading Scheme, which would force airlines to cut their own
carbon dioxide emissions or pay for other to do so. Aviation only
contributes 6% of UKcarbon dioxide emissions and less than 2% of global
greenhouse gas emissions. The Stern report says that limiting airport
capacity is an inefficient way of regulating demand, while carbon
trading would be an effective way to price emissions

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